Regional lender, NCBA Group Plc, recorded a 12.6% growth in net profit in the first six months ended June 2025 to KES 11 billion from KES 9.8 billion in a similar period last year on the back of lower costs of funds, including interest paid on fixed deposit accounts.
NCBA Group Plc Key Financial Highlights
- Profit before tax: KES 13.55 billion, up 11.4% year-on-year
- Operating income: Up 12.7% to KES 35.3 billion
- Operating Expenses: Increased by 13.5% to KES 21.8 billion
- Customer deposits: Shrank by 6% to KES 497 billion
- Loan and advances: KES 288.1 billion, down 7% year-on-year
- Total Assets: Contracted by 3.9% to KES 662.5 billion
NCBA’s Strategic Execution
NCBA Group expanded its retail base by increasing its number of branches to 121 from 116 in the first half of 2024. The group now has 412,000 retail banking customers. The group’s investments in branding have continued to drive market consideration, boosting customer acquisition to 415,000 core bank customers.
NCBA’s investment in AI yielded superior credit outcomes, with digital loans growing by 35% year-on-year to KES 646 billion from KES 478 billion in H1 2024. Digital transactions increased to 92.1% of the total transactions from 87.1% in a similar period last year, driven by a $16.3 million investment in technology to enhance the customer experience. The group saw increased customer activity on its mobile application in Kenya, with rapidly growing transactions and loan uptake. The value of mobile transactions reached KES 693 billion, compared to KES 488 billion in H1 2024.
Group Subsidiaries Performance
With the introduction of insurance to its portfolio, NCBA IG posted a strong performance in the first half of 2025 with a pre-tax profit of KES 178 million, up 68% year-on-year, and a capital adequacy ratio of 323% well above the industry average of 200%. The group’s investment bank delivered sterling results, with profit before tax growing by 147.8% to KES 389 million. Assets under management reached KES 86.3 billion, up 49% year-over-year.
Also Read: Jubilee Reaps KES 4.5B Windfall from Allianz Sale
